Leasing vs 2nd hand

neilmcl

Htm wrote: »

Hi all,

I'm hoping to get some advice on the following:
I am looking to get a relatively new car/brand new car (don't want to have the issues that older, used cars have as I need reliability) either on PCP or PCH for a couple of years (don't want to commit to anything longer term as I've just gotten married and bought our first house so unsure how life will plan out from here i.e. when we'll start a family and need a bigger car/ job change that makes the commute longer...). I'm thinking of going for a small petrol engine car as my commute to work is quite short and we go for long/longer drives on the weekends generally. Now here's my question-am I better off going for PCP or PCH? I understand it's quite a common question and I would've preferred a PCH but I've been thinking that with that you end up with no car at the end whereas with a PCP you end up with the car as a bargaining chip (only if you're in positive equity though) that you can use as a deposit on your next vehicle. I have no plans of keeping the car so handing it back in both schemes will be fine but part exchanging it under a PCP may be an option when moving onto my subsequent car. What do you guys think? Is this a sensible way to think of PCH vs. PCP?

Cheers!

Can you start a new thread please, this one is from 2016.

SouthLondonUser

I have just bought a nearly new car with a bank loan @ 3.3%. The dealer's finance options started at 7%. There wasn't much to discuss, really.
Also, I can prepay my loan with no penalty at any time. I can sell the char at any time should I ever need to. And the bank won't overcharge me for small dents and scratches.

Penelopa.Pitstop

Htm wrote: »

Hi all,

I'm hoping to get some advice on the following:
I am looking to get a relatively new car/brand new car (don't want to have the issues that older, used cars have as I need reliability) either on PCP or PCH for a couple of years (don't want to commit to anything longer term as I've just gotten married and bought our first house so unsure how life will plan out from here i.e. when we'll start a family and need a bigger car/ job change that makes the commute longer...). I'm thinking of going for a small petrol engine car as my commute to work is quite short and we go for long/longer drives on the weekends generally. Now here's my question-am I better off going for PCP or PCH? I understand it's quite a common question and I would've preferred a PCH but I've been thinking that with that you end up with no car at the end whereas with a PCP you end up with the car as a bargaining chip (only if you're in positive equity though) that you can use as a deposit on your next vehicle. I have no plans of keeping the car so handing it back in both schemes will be fine but part exchanging it under a PCP may be an option when moving onto my subsequent car. What do you guys think? Is this a sensible way to think of PCH vs. PCP?

Cheers!

You should look at total cost of ownership over certain period, for example 2 or 3 years, and then decide which option is cheaper.

There's absolutely no guarantee that you will have any equity at the end of PCP. Also, in most cases, PCP is more expensive than PCH on standard car. There are very few exceptions when PCP might be cheaper.

I suggest you go to https://www.contracthireandleasing.com/personal/car-leasing/ and play with filters on the website. Check out what you can have for particular amount of money for particular period. Always calculate total cost of ownership. If the cost for the PCH is lower than expected depraciation during the term, it's a good deal. Remember that road tax is included in PCH and avoid deals longer than car warranty. If you're not sure about your future situation, 2 years PCH could be perfect.

You can also read this thread on Pistonheads, where people post good deals: https://www.pistonheads.com/gassing/topic.asp?h=0&f=255&t=1713219&i=0